USA Gift Card Market Overview, 2029

USA Gift Card Market Overview, 2029

The gift card market in the United States has grown significantly over the past decade, evolving from a simple substitute for cash gifts to a strategic tool that drives consumer spending, brand loyalty, and customer acquisition for retailers and businesses. In the U.S., gift cards are now one of the most popular gifting options for birthdays, holidays, and special occasions due to their versatility, ease of use, and ability to cater to a broad range of consumer preferences. Consumers appreciate the flexibility gift cards provide, as recipients can choose their own purchases, making them a popular choice for both individual and corporate gifting. The market comprises two main types: open-loop cards, which can be used at multiple retailers and locations, and closed-loop cards, which are redeemable at specific stores or brands. Open-loop cards, such as Visa and Mastercard gift cards, are especially popular due to their versatility. Meanwhile, closed-loop cards have become powerful tools for brands, encouraging repeat purchases and brand loyalty. As e-commerce continues to grow, digital gift cards, which can be purchased and sent online, have become a significant part of the market. Overall, the U.S. gift card market has become a multi-billion-dollar industry, with annual growth fueled by innovations in digital and mobile technology.

According to the research report ""USA Gift Card Market Overview, 2029,"" published by Bonafide Research, the USA Gift Card market is anticipated to grow at more than 13.81% CAGR from 2024 to 2029. This growth is largely driven by the increasing adoption of digital gift cards, which have become particularly popular among millennials and Gen Z consumers. Digital gift cards offer the convenience of instant delivery, customizable options, and the ability to store cards on mobile wallets, making them an appealing option in the digital age. Additionally, gift cards have gained popularity as a corporate incentive and reward mechanism, with businesses utilizing them for employee recognition, sales incentives, and customer loyalty programs. For instance, companies often use gift cards as part of employee rewards programs, motivating and retaining talent by offering versatile incentives. Major retail players and e-commerce giants are investing in digital gift card platforms, integrating them into their apps and websites to make purchasing and redeeming gift cards a seamless experience for customers. This expansion is also supported by the growth of mobile payment systems like Apple Pay and Google Wallet, which make it easy for consumers to store and use digital gift cards. The increased popularity of e-gifting has further driven demand, as consumers seek ways to connect with friends and family regardless of location, especially around key shopping seasons and holidays.

In the U.S., gift card types are primarily divided into closed-loop and open-loop categories, each with distinct usage patterns. Closed-loop cards are tied to specific brands, making them usable only at designated stores, like Walmart or Starbucks, encouraging repeat purchases and boosting brand loyalty. Their exclusive offers and discounts make them highly popular in retail loyalty programs and as incentives for employee rewards, especially within corporate gifting. Open-loop cards, on the other hand, offer greater flexibility and are supported by major payment networks such as Visa and Mastercard, allowing recipients to use them widely across retail outlets. This versatility has driven their adoption in both personal gifting and corporate reward programs, where they serve as a near-cash equivalent. During holidays and special occasions, open-loop cards are particularly popular in the U.S. for providing freedom of choice to the recipient, while closed-loop cards maintain strong appeal among brand-loyal customers, making these two types foundational to the U.S. gift card market landscape.

Gift card price ranges cater to a broad spectrum of consumer needs, spanning high, medium, and low-value categories. High-end cards, valued above $100, are often associated with luxury brands and premium experiences, making them ideal for corporate rewards or high-value gifts. Companies frequently use high-value cards to recognize exceptional employee achievements or as executive incentives, enhancing their appeal as symbols of appreciation and prestige. Medium-range cards, generally priced between $50 and $100, are more versatile and popular for everyday gift-giving occasions like birthdays and holidays, featuring brands like Target or Best Buy. These cards balance practicality and value, making them a common choice for consumers and gift recipients alike. Low-value cards, typically under $50, are often used for smaller gestures or holiday stocking stuffers, frequently appearing in loyalty programs as customer incentives. Despite their lower value, these cards play a valuable role in customer retention and brand engagement, especially in retail and dining sectors.

In terms of end users, gift cards serve distinct functions for retail establishments and corporate institutions, both of which capitalize on their popularity to drive engagement and loyalty. Retailers frequently issue gift cards as part of their marketing strategies, using them to boost customer retention and encourage return visits. For example, stores like Walmart and Amazon provide closed-loop gift cards tailored to customer spending preferences, while open-loop cards offer flexibility and are commonly used during holiday seasons or sales events. In the corporate sector, gift cards have become an effective tool for employee recognition and rewards, with open-loop cards often chosen for their flexibility and high perceived value. Corporations utilize gift cards to recognize employee achievements, boost morale, and foster loyalty through personalized rewards, which are more effective and appreciated than traditional incentives. Gift cards offer convenience, customization, and flexibility, making them a preferred choice for modern businesses looking to incentivize employees, reward clients, or strengthen team cohesion in a personalized yet practical manner.


Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.


Considered in this report
• Geography: Global
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Global Gift Card Market with its value and forecast along with its segments
• Region & country wise Gift Card market analysis
• Application wise Gift Card distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Types
• Closed -Loop Card
• Open-loop Card

By Price Range
• High
• Medium
• Low

By Sale Channel
• Offline
• Online

By End User
• Retail Establishment
• Corporate Institution

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.